Telangana Finance Minister Mallu Bhatti Vikramarka and Chief Minister Revanth Reddy.
Hyderabad: Telangana Deputy Chief Minister and Finance Minister Mallu Bhatti Vikramarka on Wednesday presented a Rs 3.04 lakh crore budget for the 2025-26 fiscal year in the state Assembly. This marks the second full-fledged budget of the Congress government in Telangana.
The Finance Minister outlined the total proposed expenditure, allocating Rs 2.26 lakh crore for revenue expenditure and Rs 36,504 crore for capital expenditure. "For the fiscal year 2025-26, I am proposing a total expenditure of Rs 3,04,965 crore, with revenue expenditure of Rs 2,26,982 crore and capital expenditure of Rs 36,504 crore," he stated. This follows the Rs 2.91 lakh crore budget presented for 2024-25.
Telangana's Gross State Domestic Product (GSDP) registered a growth rate of 10.1 percent in 2024-25, surpassing the national growth rate of 9.9 percent. At current prices, the state's GSDP stands at Rs 16,12,579 crore. The per capita income for 2024-25 was Rs 3,79,751, reflecting a growth rate of 9.6 percent. In contrast, India's per capita income stood at Rs 2,05,579 with an 8.8 percent growth rate. "Clearly, Telangana’s per capita income is higher by 1.8 times, i.e., Rs 1,74,172, reflecting the state's strong economic progress," Vikramarka noted.
The Services Sector accounted for 66.3 percent of Telangana’s Gross State Value Added (GSVA) in 2024-25, while the Agriculture and allied sectors contributed 17.3 percent, and the Industrial Sector accounted for 16.4 percent. The government has introduced various initiatives, such as free electricity, Rythu Bharosa, farm loan waivers, and investments in irrigation projects, to support the agricultural sector. Additionally, Telangana is promoting horticulture, animal husbandry, and aquaculture to ensure diversified and sustainable agricultural growth.
The industrial sector employs 22.5 percent of the state's workforce, and the government is implementing the "China +1" strategy to position Telangana as a global manufacturing hub in key sectors, including pharmaceuticals, biotechnology, electric vehicles, and renewable energy.
The Finance Minister raised concerns over the declining share of tax devolution for Southern states, including Telangana. Under the 14th Finance Commission, the state received 2.437 percent of central funds, which decreased to 2.102 percent under the 15th Finance Commission. Vikramarka criticized this allocation, arguing that well-performing states should not be penalized and called for a fairer tax distribution system that rewards economic contributors.
The state government has proposed reforms to horizontal tax devolution, advocating for a shift away from the current "Per Capita Income Distance" criterion. Instead, it suggests assigning 50 percent weightage to GSDP to ensure a more equitable allocation of resources for states driving national economic growth.
Despite challenges over the past decade, Telangana is now advancing on a trajectory of progress. With its "Telangana Rising 2050" vision, the government is shaping policies and programs to foster sustainable development. "Our strategic roadmap for the next decade envisions a five-fold expansion of the current $200 billion state economy into a trillion-dollar economy," Vikramarka stated.
With IANS inputs